Market announcement

Title

2024 II quarter and 6 months consolidated interim report (unaudited)

Message

In  the first half of 2024, the construction market has experienced increasingly
intense  competition. Public sector orders  remain low, and the pre-construction
process  in the private sector continues to be very lengthy. Analysts' forecasts
for  economic growth in the coming quarters  are cautious, and the activities of
private clients are in line with this outlook.
Despite  the challenging  economic conditions,  the Nordecon  Group has improved
three key financial indicators in the first half of this year - revenue, profit,
and the volume of order book.
The  first half  of 2024 for  the Nordecon  Group is  primarily characterized by
improved  profitability. The  Group's gross  profit margin  was 6.3% (3.2% in H1
2023) and  7.4% in the second quarter  (3.4% in Q2 2023). Profitability improved
in  both  the  Buildings  and  Infrastructure  segments,  aided  by  better risk
management  in main contracts and the  completion in 2023 of long-term contracts
signed before the beginning of war in Ukraine, which were significantly affected
by  the  rapid  increase  in  construction  input  costs. The Group's net profit
amounted to EUR1,802 thousand (a loss of EUR2,299 thousand in H1 2023).
Revenue  for the first  half of 2024 was  EUR114,945 thousand, which is 33% higher
compared  to the  continuing operations  revenue for  the same period last year.
Revenue  in the Buildings segment increased by 51%, while it decreased by 27% in
the Infrastructure segment.
As  of June  30, 2024, the volume  of order  book of  the Group's  companies was
EUR178,799  thousand.  Compared  to  the  same  period  last  year,  the volume of
unfinished  work  has  increased  by  15%. In  the  first  half of the year, new
contracts  worth a  total of  EUR64,030 thousand  were signed,  with an additional
EUR33,597  thousand worth of  new contracts added  in July following the reporting
period.

Condensed consolidated interim statement of financial position

 EUR'000                                            30 June 2024 31 December 2023
-------------------------------------------------------------------------------
 ASSETS

 Current assets

 Cash and cash equivalents                              12,513           11,892

 Trade and other receivables                            41,368           37,010

 Prepayments                                             3,576            1,789

 Inventories                                            22,948           25,879

 Total current assets                                   80,405           76,570

 Non-current assets

 Other investments                                          76               76

 Trade and other receivables                             9,519            9,113

 Investment property                                     5,517            5,517

 Property, plant and equipment                          13,660           14,292

 Intangible assets                                      14,975           14,964

 Total non-current assets                               43,747           43,962

 TOTAL ASSETS                                          124,152          120,532



 LIABILITIES

 Current liabilities

 Borrowings                                             11,064           10,188

 Trade payables                                         62,115           39,855

 Other payables                                          7,436            9,241

 Deferred income                                        10,365           20,602

 Provisions                                                671            1,129

 Total current liabilities                              91,651           81,015

 Non-current liabilities

 Borrowings                                              4,137            8,563

 Trade payables                                          2,107            6,011

 Provisions                                              2,413            2,405

 Total non-current liabilities                           8,657           16,979

 TOTAL LIABILITIES                                     100,308           97,994



 EQUITY

 Share capital                                          14,379           14,379

 Own (treasury) shares                                   (660)            (660)

 Share premium                                             635              635

 Statutory capital reserve                               2,554            2,554

 Translation reserve                                     3,951            3,786

 Retained earnings                                       1,939              919

 Total equity attributable to owners of the
 parent                                                 22,798           21,613

 Non-controlling interests                               1,046              925

 TOTAL EQUITY                                           23,844           22,538

 TOTAL LIABILITIES AND EQUITY                          124,152          120,532

Condensed consolidated interim statement of comprehensive income

 EUR'000                             H1 2024  Q2 2024  H1 2023  Q2 2023      2023
-------------------------------------------------------------------------------
 Continuing operations
-------------------------------------------------------------------------------
 Revenue                           114,945   68,700   86,526   52,977   186,464

 Cost of sales                   (107,751) (63,644) (83,743) (51,179) (182,655)

 Gross profit                        7,194    5,056    2,783    1,798     3,809



 Marketing and distribution
 expenses                            (172)    (104)    (226)    (122)     (497)

 Administrative expenses           (3,373)  (1,809)  (2,984)  (1,397)   (6,564)

 Other operating income                 77       51      210      101       286

 Other operating expenses            (458)    (312)    (186)    (158)     (465)

 Operating profit (loss)             3,268    2,882    (403)      222   (3,431)



 Finance income                        317      180      131       62       613

 Finance costs                     (1,546)    (841)  (1,783)    (898)   (3,356)

 Net finance costs                 (1,229)    (661)  (1,652)    (836)   (2,743)



 Profit (loss) before tax            2,039    2,221  (2,055)    (614)   (6,174)

 Income tax expense                  (237)    (237)    (244)      (1)     (244)

 Profit (loss) for the period
 from continuing operations          1,802    1,984  (2,299)    (615)   (6,418)

 Profit for the period from a
 discontinued operation                  -        -      709      699     8,474

 Profit (loss) for the period        1,802    1,984  (1,590)       84     2,056

 Other comprehensive income
 Items that may be reclassified
 subsequently to
 profit or loss

 Exchange differences on
 translating foreign operations        165      114      254       85       470

 Total other comprehensive
 income                                165      114      254       85       470

 TOTAL COMPREHENSIVE INCOME
 (EXPENSE)                           1,967    2,098  (1,336)      169     2,526



 Profit (loss) attributable to:

 - Owners of the parent              1,020    1,613  (2,493)    (619)     (942)

 - Non-controlling interests           782      371      903      703     2,998

 Profit (loss) for the period        1,802    1,984  (1,590)       84     2,056



 Comprehensive income (expense)
 attributable to:

 - Owners of the parent              1,185    1,727  (2,239)    (534)     (472)

 - Non-controlling interests           782      371      903      703     2,998

 Comprehensive income (expense)
 for the period                      1,967    2,098  (1,336)      169     2,526



 Earnings per share from
 continuing operations
 attributable to owners of the
 parent:

 Basic earnings per share (EUR)         0.03     0.05   (0.10)   (0.04)    (0.31)

 Diluted earnings per share (EUR)       0.03     0.05   (0.10)   (0.04)    (0.31)



 Earnings per share from a
 discontinued operation
 attributable to owners of the
 parent:

 Basic earnings per share (EUR)            -        -     0.02     0.02      0.28

 Diluted earnings per share (EUR)          -        -     0.02     0.02      0.28

Condensed consolidated interim statement of cash flows

 EUR'000                                                   H1 2024  H1 2023*
--------------------------------------------------------------------------
 Cash flows from operating activities

 Cash receipts from customers                            121,573   157,087

 Cash paid to suppliers                                (100,334) (133,900)

 VAT paid                                                (4,746)   (5,531)

 Cash paid to and for employees                         (10,142)  (12,640)

 Income tax paid                                           (237)     (687)

 Net cash from operating activities                        6,114     4,329



 Cash flows from investing activities

 Paid for acquisition of property, plant and equipment     (257)     (185)

 Proceeds from sale of property, plant and equipment          78       291

 Loans provided                                             (18)     (524)

 Repayments of loans provided                                  1        10

 Dividends received                                            6        12

 Interest received                                           138         9

 Other investments                                         (250)         0

 Net cash used in investing activities                     (302)     (387)



 Cash flows from financing activities

 Proceeds from loans received                                468     1,242

 Repayments of loans received                            (3,392)     (650)

 Lease payments                                          (1,091)   (1,447)

 Interest paid                                             (545)     (601)

 Dividends paid                                            (661)   (1,355)

 Other payments                                               50         0

 Net cash used in financing activities                   (5,171)   (2,811)



 Net cash flow                                               641     1,131



 Cash and cash equivalents at beginning of period         11,892     7,238

 Effect of movements in foreign exchange rates              (20)         0

 Change in cash and cash equivalents                         641     1,131

 Cash and cash equivalents at end of period               12,513     8,369

Financial review

Financial performance

Nordecon  delivered a gross profit of EUR7,194 thousand in the first half of 2024
(H1 2023: EUR2,783 thousand). The group's gross margin improved significantly year
on  year, rising  to 6.3% for  the first  half (H1  2023: 3.2%) and 7.4% for the
second  quarter (Q2 2023: 3.4%). Both main operating segments earned a profit in
the first half and the second quarter of the year, showing a strong year-on-year
margin  improvement. The gross margin of the Buildings segment was 7.7% for both
the  first half  and the  second quarter  (H1 2023: 4.9% and Q2 2023: 3.6%). The
Infrastructure  segment's gross  margin was  lower, reaching  0.9% for the first
half and 8.5% for the second quarter of 2024 (H1 2023: 0.1% and Q2 2023: 4.5%).
While  both  segments  have  improved  their  profit margins, the volumes of the
Infrastructure  segment are  low and  therefore most  of the  group's profit was
generated  by the  Buildings segment.  The margin  improvement was  supported by
better  mitigation of the  risks associated with  general contracting and by the
fact that several long-term contracts signed before the war, which were severely
affected by an earlier surge in construction input prices, expired in 2023.
The  group's  administrative  expenses  for  the  first half of 2024 amounted to
EUR3,373 thousand. Administrative expenses increased by around 13% compared to the
first  half  of  2023, when  the  figure  was  EUR2,984  thousand.  The  rise  was
attributable  to staff costs, which were  strongly influenced by the recognition
of a provision for performance-related pay. The ratio of administrative expenses
to  revenue  (12  months  rolling)  increased  year  on year, rising to 3.2% (H1
2023: 3.0%).
The  group  ended  the  first  half  of  2024 with an operating profit of EUR3,268
thousand  (H1 2023: an operating  loss of EUR403  thousand). EBITDA for the period
was EUR4,690 thousand (H1 2023: EUR1,149 thousand).
The  group's finance income and costs are affected by exchange rate fluctuations
in  the group's  foreign markets.  During the  period, the  exchange rate of the
Ukrainian  hryvnia weakened against the euro  by around 2.7%, while the exchange
rate of the Swedish krona weakened against the euro by around 2.3%. As a result,
the  translation  of  the  loans  provided  to the group's Ukrainian and Swedish
subsidiaries in euros into the local currencies gave rise to an exchange loss of
EUR163 thousand (H1 2023: EUR241 thousand).
The  group's net profit for the period  was EUR1,802 thousand (H1 2023: a net loss
of  EUR2,299  thousand).  The  net  profit  attributable  to owners of the parent,
Nordecon AS, was EUR1,020 thousand (H1 2023: a net loss of EUR2,493 thousand).

Cash flows

Operating  activities produced a net cash inflow of EUR6,114 thousand in the first
half  of 2024 (H1  2023: an inflow  of EUR4,329  thousand). Operating cash flow is
strongly  influenced by the fact that the  contracts signed with most public and
private sector customers do not require them to make advance payments, while the
group  has to make  prepayments to subcontractors  and materials suppliers. Cash
inflow  is also reduced by contractual retentions, which extend from 5 to 10% of
the contract price and are released at the end of the construction period only.
Investing  activities  of  the  period  resulted  in  a net cash outflow of EUR302
thousand  (H1 2023: an outflow  of EUR387 thousand).  Payments for the purchase of
property,  plant and equipment  totalled EUR257 thousand  (H1 2023: EUR185 thousand)
and  proceeds  from  the  sale  of  property,  plant  and equipment totalled EUR78
thousand  (H1 2023: EUR291 thousand). Loans provided  amounted to EUR18 thousand (H1
2023: EUR524  thousand), interest received to EUR138 thousand (H1 2023: EUR9 thousand)
and investments in long-term deposits to EUR250 thousand (H1 2023: EURnil).
Financing  activities generated a net cash outflow of EUR5,171 thousand (H1 2023:
an  outflow of EUR2,811  thousand). Proceeds from  loans received amounted to EUR468
thousand (H1 2023: EUR1,242 thousand), consisting of the use of development loans.
Repayments  of loans received totalled EUR3,392 thousand (H1 2023: EUR650 thousand),
consisting  of regular repayments of  long-term investment and development loans
and  the  change  in  the  overdraft  balance. Lease payments amounted to EUR1,091
thousand  (H1 2023: EUR1,447 thousand). Dividends paid  in the first half of 2024
amounted to EUR661 thousand (H1 2023: EUR1,355 thousand).
The  group's cash  and cash  equivalents as  at 30 June 2024 amounted to EUR12,513
thousand (30 June 2023: EUR8,369 thousand).

Key financial figures and ratios

 Figure/ratio                     H1 2024      H1 2023      H1 2022        2023
-------------------------------------------------------------------------------
 Revenue (EUR'000)*                 114,945       86,526      102,073     186,464

 Revenue change*                      33%        (15)%          18%     (15.4)%

 Net profit (loss) (EUR'000)*         1,802      (2,299)      (1,125)     (6,418)

 Net      profit      (loss)
 attributable  to  owners of
 the parent (EUR'000)                 1,020      (2,493)        (928)       (942)

 Weighted  average number of
 shares                        31,528,585   31,528,585   31,528,585  31,528,585

 Earnings per share (EUR)              0.03       (0.08)       (0.03)      (0.03)

 Administrative  expenses to
 revenue*                            2.9%         3.4%         2.5%        3.5%

 Administrative  expenses to
 revenue (rolling)*                  3.2%         3.0%         2.1%        3.5%

 EBITDA (EUR'000)*                    4,690        1,149        1,847       (412)

 EBITDA margin*                      4.1%         1.3%         1.8%      (0.2)%

 Gross margin*                       6.3%         3.2%         1.1%        2.0%

 Operating margin*                   2.8%       (0.5)%         0.3%      (1.8)%

 Operating  margin excluding
 gain  on  non-current asset
 sales*                              2.8%       (0.7)%         0.1%      (2.0)%

 Net margin*                         1.6%       (2.7)%       (1.1)%      (3.4)%

 Return on invested capital          6.2%       (1.0)%         1.2%        8.0%

 Return on equity                    7.8%       (6.1)%         0.1%        8.3%

 Equity ratio                       19.2%        17.1%        18.2%       18.7%

 Return on assets                    1.5%       (1.1)%         0.0%      (1.6)%

 Gearing                             6.9%        30.0%        37.2%       16.6%

 Current ratio                       0.88         0.89         0.91        0.95

                             30 June 2024 30 June 2023 30 June 2022 31 Dec 2023
-------------------------------------------------------------------------------
 Order      book
 (EUR'000)*                         178,799      155,133      184,420     216,732
-------------------------------------------------------------------------------

*Continuing operations

Due  to the sale of Nordecon Betoon OÜ  and NOBE Rakennus OY at the beginning of
December  2023, the  business  of  those  companies  has  been  classified  as a
discontinued  operation. The discontinued operation's  revenues and expenses for
comparative  periods are presented  separately in the  consolidated statement of
comprehensive income within Profit (loss) from a discontinued operation.

Performance by geographical market

Revenue  generated outside Estonia remained stable compared to the first half of
2023, accounting  for around 2% of the group's  total revenue for the first half
of  2024. The  main  foreign  market  was  Ukraine.  Despite the war, Nordecon's
construction  volumes in Ukraine increased,  particularly in the second quarter.
Work  continued on  the reconstruction  of substations  and the  installation of
associated  physical  protection  systems  in  the  Poltava, Zhytomyr, Volyn and
Ivano-Frankivsk  regions of Ukraine  under contracts secured  in 2023. The group
did  not generate any revenue  and had no ongoing  construction contracts in the
Swedish market. With the sale of Nordecon Betoon OÜ at the beginning of December
2023, the  group also  withdrew from  the Finnish  market, where it had operated
through  Nordecon Betoon OÜ's subsidiary NOBE Rakennus OY. The group operated on
a project basis in Latvia.

            H1 2024   H1 2023   H1 2022   2023
-----------------------------------------------
  Estonia       98%       98%       97%    97%

  Ukraine        2%        1%        0%     2%

  Finland         -        1%        1%     1%

  Latvia          -        0%        2%     0%

Performance by business line

Segment revenues

We  strive to maintain a balance between  the revenues of our two main operating
segments  (Buildings and Infrastructure) as far as market developments allow, as
this  helps  diversify  risks  and  provides  better  opportunities  to continue
construction  activities in more challenging market conditions, where volumes in
one subsegment decline sharply while volumes in another subsegment start to grow
more rapidly.
The  group's revenue  for the  first half  of 2024 was EUR114,945 thousand, around
33% higher  than  in  the  same  period  last year, when revenue from continuing
operations amounted to EUR86,526 thousand. The Buildings segment generated revenue
of EUR100,421 thousand and the Infrastructure segment revenue of EUR14,486 thousand.
The  corresponding figures for the first  half of 2023 were EUR66,651 thousand and
EUR19,821  thousand. Revenue generated by the Buildings segment increased by 51%,
while  revenue  generated  by  the  Infrastructure segment decreased by 27%. The
revenue  growth and changes  in the performance  of the reportable segments were
expected and in line with the group's order book.

  Revenue by operating segment   H1 2024   H1 2023   H1 2022   2023
--------------------------------------------------------------------
  Buildings                          87%       77%       80%    74%

  Infrastructure                     13%       23%       20%    26%

Subsegment revenues

In  the Buildings segment,  the public buildings  subsegment doubled its revenue
and the commercial buildings subsegment increased its revenue by 27% compared to
the  same  period  last  year.  The  revenue  of  the  industrial  and warehouse
facilities  subsegment  was  also  modest  in  previous  years and therefore the
decline  compared to the same period last year was not significant (6%), but the
revenue  of  the  apartment  buildings  subsegment decreased considerably (38%),
particularly  revenue from apartment construction  contracts, which reflects the
current market situation in the subsegment.
The  period's  largest  projects  in  the  public  buildings subsegment were the
construction  of the main building of the Estonian Internal Security Service and
Loodusmaja  (Nature Hub)  in Tallinn,  the design  and construction of warehouse
complexes  for  the  Centre  for  Defence  Investment  in  Luunja  and Nõo rural
municipalities   in  Tartu  County  and  in  Ida-Viru  County,  the  design  and
construction  of a new  study and sports  building for the  Saku Upper Secondary
School near Tallinn, the reconstruction of the building of the Karlova School in
Tartu  and the design  and construction of  a study building  for the Centre for
Defence Investment on the Raadi campus in Tartu.
Revenue  generated by  the apartment  buildings subsegment  consisted of revenue
from  the construction of the commercial  and residential complex Vektor and the
group's  own development projects.  Revenue from our  own development operations
increased  year on year,  rising to EUR6,174  thousand (H1 2023: EUR5,510 thousand).
The  amount  includes  revenue  from  the  sale  of apartments in Tartu - in the
Mõisavahe Kodu housing estate and the centrally located Emajõe Residents housing
estate  on  the  banks  of  the  Emajõgi  river (https://emajoeresidents.ee). We
continued  the construction of phase 1 of  the Seileri Kvartal housing estate in
Pärnu  (https://seileri.ee),  scheduled  to  be  completed  in  spring 2025, and
started  the development of the Tammepärja  Kodu housing estate in the Tammelinn
district  in Tartu (https://tammelinn.ee).  In carrying out  our own development
activities,  we  carefully  monitor  potential  risks in the housing development
market.
The  largest projects under construction  in the commercial buildings subsegment
were  the commercial and residential complex  Vektor and the LEED Gold compliant
Golden   Gate  office  building  at  Ahtri  6 in  Tallinn  and  the  design  and
construction of a commercial building at Nõlvakaare 4 at Raadi in Tartu County.
The  revenue of the industrial and warehouse facilities subsegment resulted from
small projects.

  Buildings segment                     H1 2024   H1 2023   H1 2022   2023
---------------------------------------------------------------------------
  Public buildings                          68%       33%       28%    37%

  Commercial buildings                      20%       25%       26%    23%

  Apartment buildings                        9%       31%       30%    27%

  Industrial and warehouse facilities        3%       11%       16%    13%

The   largest  revenue  contributor  in  the  Infrastructure  segment  was  road
construction  and  maintenance  although  its  revenue  decreased  by around 8%
compared  with a year earlier. A major share of the subsegment's revenue for the
period  resulted from the  construction of an  armoured manoeuvre shooting range
and  roads in  Harju County,  the reconstruction  of the Mäeküla-Koeru-Kapu road
section,  the provision  of road  maintenance services  in Järva  County and the
construction  of  the  Tagadi  ecoduct  (wildlife  crossing) on the Rail Baltica
route.

  Infrastructure segment              H1 2024   H1 2023   H1 2022   2023
-------------------------------------------------------------------------
  Road construction and maintenance       93%       65%       81%    63%

  Other engineering                        7%       20%       14%    30%

  Environmental engineering                0%       15%        0%     7%

  Specialist engineering                   0%        0%        5%     0%

Order book

The group's order book (backlog of contracts signed but not yet performed) stood
at EUR178,799 thousand at 30 June 2024. Compared to the same period last year, the
order  book has grown by 15%. In the first half of 2024, we signed new contracts
for  EUR64,030 thousand (H1 2023: EUR100,632 thousand), of which EUR46,413 thousand in
the  second quarter  (Q2 2023: EUR58,771  thousand). After  the reporting date, we
have  signed  additional  new  contracts  for  EUR33,597  thousand.  The  rise  in
construction  input prices and the increase in interest rates due to the rise in
the  EURIBOR rates in recent  years have caused a  sharp increase in the cost of
development  projects  and,  consequently,  the  postponement  of  new projects.
Investment  by the  Transport Administration  has decreased significantly, which
has  had a direct  impact on the  order book of  our Infrastructure segment. The
volumes  of work procured for  the Rail Baltica project  have increased and will
partially  offset the decline in investment by the Transport Administration, but
the  excessive length of the procurement processes makes it difficult to predict
the  potential start dates of  the work and the  impact on revenue. While public
investment  in building  construction has  also declined,  we no some investment
activity at local authority level.

                     30 June 2024 30 June 2023 30 June 2022 31 December 2023
----------------------------------------------------------------------------
 Order book (EUR'000)*      178,799      155,133      184,420          216,732

*Continuing operations

The  share of the Buildings segment in  the group's order book has increased: at
30 June  2024, the Buildings  segment accounted  for 90% and  the Infrastructure
segment  for 10% of  the group's  total order  book (30 June 2023: 83% and 17%,
respectively). Compared to 30 June 2023, the order book of the Buildings segment
has  increased by  26%, with the  strongest increase  in the  order book  of the
public  buildings subsegment. The  order book of  the Infrastructure segment has
decreased  by  35%, mainly  due  a  decrease  in  the  order  book  of  the road
construction and maintenance subsegment.
Major contracts secured during the period include:

  * the construction of an armoured manoeuvre shooting range and roads for the
    Centre for Defence Investment in Harju County with an approximate cost of
    EUR5,450 thousand;
  * the construction of a modern war and disaster medicine centre for the Centre
    for Defence Investment in Tartu with an approximate cost of EUR15,000 thousand
    (the group is one of the joint bidders);
  * the construction of a Lidl store in Võru with an approximate cost of EUR3,900
    thousand;
  * the construction of a platform area for Class E aircraft at Tallinn Airport
    with an approximate cost of EUR7,500 thousand;
  * the construction of a building complex in the Port Athena quarter at Väike-
    Turu 7 in Tartu. The complex consists of four six-storey buildings, one
    seven-storey building and a common basement level used mainly for parking.
    The approximate cost of the contract is EUR26,000 thousand.

Management  expects the group's revenue to increase slightly in 2024 compared to
the  revenue generated by continuing operations in 2023. In a highly competitive
environment,  we  will  avoid  taking  unjustified  risks that could materialise
during  the contract execution phase  and have an adverse  impact on the group's
results.  We  will  focus  on  cost  management  and pre-construction and design
activities where we can leverage our professional competitive advantages.

People

Employees and staff costs

The average number of the group's employees (at the parent and the subsidiaries)
in  the  first  half  of  2024 was  430, including  282 engineers  and technical
professionals  (ETP). Headcount decreased by around 25% year on year, due to the
restructuring  of the  group's Infrastructure  segment and  the sale of Nordecon
Betoon OÜ and NOBE Rakennus OY at the beginning of December 2023.

Average   number   of   employees   at  group  companies  (the  parent  and  the
subsidiaries):

                  H1 2024   H1 2023   H1 2022   2023
-----------------------------------------------------
  ETP                 282       384       437    374

  Workers             148       188       234    184

  Total average       430       572       671    558

The  group's staff costs  from continuing operations,  including all taxes, were
EUR10,127 thousand in the first half of 2024, compared with EUR9,361 thousand in the
same  period  last  year.  Staff  costs  have  increased by around 8%, driven by
general wage pressures and the recognition of a provision for performance pay.
The service fees of the members of the council of Nordecon AS for the first half
of  2024 totalled EUR100 thousand and the related social security charges amounted
to EUR33 thousand (H1 2023: EUR79 thousand and EUR26 thousand, respectively).
The  service  fees  of  the  members  of  the board of Nordecon AS totalled EUR264
thousand  and the related  social security charges  amounted to EUR87 thousand (H1
2023: EUR253 thousand and EUR83 thousand, respectively).

Labour productivity and labour cost efficiency

We  measure  the  efficiency  of  our  operating  activities using the following
productivity  and  efficiency  indicators,  which  are  based  on  the number of
employees and the staff costs incurred:

                                                H1 2024 H1 2023 H1 2022    2023
-------------------------------------------------------------------------------
 Nominal labour productivity (rolling), (EUR'000)   553.9   488.3   470.0   499.3

 Change against the comparative period, %         13.4%    3.9%   16.5%    1.8%



 Nominal labour cost efficiency (rolling), (EUR)     11.0    11.0    12.3    10.3

 Change against the comparative period, %          0.4% (11.0)%   13.0% (13.4)%

The  group's nominal labour  productivity for the  period increased year on year
due to a decrease in the average number of employees.

Andri Hõbemägi
Nordecon AS
Head of Investor Relations
Tel: +372 6272 022
Email: andri.hobemagi@nordecon.com (mailto:andri.hobemagi@nordecon.com)
www.nordecon.com (http://www.nordecon.com)